Can i apply to multiple mortgage lenders

Table of Contents Show

• What to do now
• Talk to your network of advisors — friends, relatives, or others whom you trust — about how they chose their mortgage lender
• Make a list of potential lenders
• Contact at least three lenders on your list
• What to know
• You’ll get the most value out of these conversations if you bring documentation with you
• You can decide whether to allow a lender to check your credit
• You can work with either a lender or a mortgage broker to get a mortgage
• How to avoid pitfalls
• Only work with loan officers who make you feel comfortable asking questions
• Keep your options open
• Credit discrimination is illegal
• Is it OK to get preapproved by multiple lenders?
• Can you apply at 2 lenders at the same time?
• Do multiple mortgage pre approvals affect credit score?
• Can you check with multiple lenders for mortgage?

courtneyk / Getty Images

If you’re buying a house in 2022, it likely means you are facing the complicated process of applying for a mortgage to help pay for it. You may have heard that applying for a mortgage (or any loan, for that matter) can hurt your credit score, so you may be hesitant to apply to more than one mortgage lender.

See: Mortgage Purchase Applications Jump 8% and Loan Sizes Hit a Record as Rates Begin to Rise
Find: How To Pay Off Your Mortgage in 10 Years

However, it’s important to do exactly that to ensure you’re getting the best deal. The secret is to keep all the applications within a 45-day time period. The three major credit bureaus, TransUnion, Expedia and Experian, consider similar applications within that time frame as one credit inquiry. Your credit score might drop by a few points, but it shouldn’t make a dramatic difference in the interest rate you’ll qualify for.

The Consumer Finance Protection Bureau recommends applying to “at least three lenders.”

To choose your top lenders, you’ll want to consider the types of mortgage products they offer. If you are a first-time homebuyer, you might be looking into an FHA mortgage to put a smaller percentage of money down. You’ll want to find a lender that works with the Federal Housing Administration.

You’ll also want to find out about application fees, which could influence your decision of how many mortgage applications to submit. Search online and ask friends and neighbors for their recommendations of the best mortgage lenders. You want a mortgage company that will provide not just the best rates, but excellent customer service to guide you through the process.

See: 19 Reasons Your Mortgage Loan Could Get Rejected
Find: Metaverse Real Estate Mortgages: The Future of Property Investment?

One way to narrow down your list of lenders is to request loan estimates from several of your top prospects. A loan estimate doesn’t require any paperwork and has no fees attached. It also won’t affect your credit score.  

More from GOBankingRates:

• Experts: Here’s How Much You Should Have In Your Checking Account
• Bank Accounts That Will Help Supplement and Grow Your Social Security
• How to Easily Add $500 to Your Wallet This Month
• 40% of Women Have Less Than $100 in Their Savings Accounts, New Survey Finds

Editorial Note: This content is not provided by Chase. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Chase.

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

Learn More

What to do now

Talk to your network of advisors — friends, relatives, or others whom you trust — about how they chose their mortgage lender

Ask your advisors: What were the criteria that were important to them? Are these criteria also important to you?

• Ask for recommendations. Your advisors might recommend a specific lender or loan officer, especially if the advisor lives near you. Or they might recommend a method for finding a lender.
  
• Don’t just ask for names and numbers. Ask your advisors why they liked a particular lender or loan officer. What was important or comfortable for them may not be important or comfortable for you.
  
• A housing counselor can also be a good resource to help you figure out how to identify lenders.
  

Make a list of potential lenders

In addition to your advisors’ recommendations, there are many ways to find potential lenders. Contact your local bank or credit union and others that serve your area.

Contact at least three lenders on your list

Don’t stop with just one lender! By exploring your options with multiple lenders, you get more information about your options and get a sense for which loan officers you might feel most comfortable working with. Call each lender to set up an appointment to meet with a loan officer. 

At the appointment:

• Share the basic facts about your situation and the kind(s) of loan you are considering.
  
• Ask the loan officer whether your plan makes sense to them, or whether they might recommend something a little different. If they recommend something different, ask why.
  
• Ask the loan officer to show you the interest rate, APR, estimated fees, and monthly payments for a couple of different loan options.
  
• Ask the loan officer to look at your documents and help you understand whether there are any reasons you might not qualify for the loan options you have discussed.
  

What to know

You’ll get the most value out of these conversations if you bring documentation with you

Lenders have very specific guidelines about how they count and document your income, assets, and the source of your down payment funds. An experienced loan officer can help you spot potential issues and suggest ways to address them. If your application might be complicated – for example, if you are self-employed – it’s best to find out sooner rather than later. Seek out lenders who are willing to go over the details with you.

You can decide whether to allow a lender to check your credit

A loan officer may ask for permission to check your credit. Knowing your credit score allows the loan officer to give you accurate pricing information about different loan options. An experienced loan officer can also help you check your credit report for errors. However, a lender’s credit check can show up in a future credit report and can result in a slight dip in your credit score. Within a 45-day window, you can have multiple lenders check your credit without any additional impact on your score. Learn more about what to consider when deciding when to allow a lender to check your credit.

You can work with either a lender or a mortgage broker to get a mortgage

You can meet with both types of companies at this stage to get a feel for both options. Learn more about the difference between a lender and a mortgage broker. For simplicity, we use the term “lender” or “loan officer” to refer to both lenders and mortgage brokers.

How to avoid pitfalls

Only work with loan officers who make you feel comfortable asking questions

A loan officer’s answers should make sense and help you understand your choices.

• If a loan officer makes you uncomfortable, can’t answer your questions, or is too pushy, look for another lender that is a better fit.
• As you move through this process, always make sure to check that the paperwork you receive matches what the loan officer tells you. If it doesn’t, ask questions. If the loan officer is unable to answer your questions, consider working with a different lender.
  
• You can check to see if a loan officer is authorized in your state. Most are listed in this loan originator database .
  

Keep your options open

Don't decide on a lender at this stage! Wait until you have specific loan offers that you can compare before choosing a lender. You’ll get the best deal that way.

Credit discrimination is illegal

Under the Equal Credit Opportunity Act, it’s illegal for lenders to base credit decisions on certain factors such as race, religion, marital status, national origin, receipt of any sort of public assistance, sex, or age (as long as you are old enough to enter into a contract). Learn about the different kinds of loans available and contact a variety of lenders, including local banks or credit unions. Learn more about illegal credit discrimination .

Is it OK to get preapproved by multiple lenders?

Can you apply at 2 lenders at the same time?

Do multiple mortgage pre approvals affect credit score?

Can you check with multiple lenders for mortgage?